China Shadow Bank That Oversaw $108 Billion Faces Liquidation
Zhongrong International Trust Co. was placed in custody in late 2023 after missing payments on multiple trust products.
Source: Bloomberg
This article is for subscribers only.
Zhongrong International Trust Co., one of China’s largest shadow banks before it defaulted on billions of dollars of wealth products, is facing liquidation after its two state-appointed custodians concluded the firm is insolvent, according to people familiar with the matter.
A winding-up proposal for Zhongrong, which had 786 billion yuan ($108 billion) of assets under management as of 2022, was recently submitted to regulators by Citic Trust Co. and CCB Trust Co., said the people, asking not to be identified as the matter is private. No final decision has been made by the authorities, the people said.